With the successful completion of Bitcoin’s fourth halving worldwide, we have witnessed a historic moment. This event not only signifies a further reduction in Bitcoin’s supply but also symbolizes the cryptocurrency market entering a new phase.
Upgraded Scarcity
Bitcoin has undergone its fourth halving, decreasing the block subsidy from 6.25 bitcoins to 3.125 bitcoins. This has resulted in a decrease in Bitcoin’s annualized inflation rate to 0.85%. The supply of Bitcoin will further decrease, increasing its scarcity, which is already lower than the steady-state issuance rate of gold. As a result, Bitcoin’s scarcity surpasses that of gold and becomes one of the most valuable assets globally.
Price Surge and Historical Peak Breakthrough
Bitcoin’s price experienced a strong surge just before the halving, not only breaking historical price peaks but also bringing substantial profits to investors. This upward trend has not only boosted investor confidence but also reversed the downward trend in miner income, injecting new vitality into the market.
Supply Deflation and Market Expectations
Through the adaptive difficulty adjustment algorithm, Bitcoin’s supply curve has been determined, and each halving represents a significant adjustment for the market. The occurrence of the fourth halving means a further reduction in Bitcoin’s annualized inflation rate, making the market supply more tense. This has also sparked higher expectations for the future market.
Impact on Trading Volume
Although the impact of Bitcoin’s halving on the market cannot be ignored, its scale needs to be viewed rationally. The newly minted bitcoins after the halving still account for a small portion of the total Bitcoin market trading volume. As the Bitcoin ecosystem continues to expand, the impact of the halving on the available trading supply is gradually diminishing.
Market Performance and Historical Experience
Bitcoin’s halving event is always accompanied by significant market volatility. However, we should also recognize the uniqueness of the Bitcoin market in different cycles and not simply equate historical precedents with the current market environment. Although market performance may differ, each halving becomes a milestone in the development of the Bitcoin market, propelling it towards a broader future.
Reasonable Expectations and Market Strategies
For investors, reasonable expectations and prudent market strategies are crucial. Although the halving event will bring a series of changes to the market, we must remain rational and avoid chasing short-term profits excessively. Instead, we should formulate more sustainable investment plans based on Bitcoin’s long-term performance.
Fundamental Growth and Future Outlook
In addition to price performance, the fundamental growth of the Bitcoin network is also a focus of our attention. The growth of metrics such as hash rate, miner income, and asset liquidity has laid a solid foundation for the future development of the Bitcoin market. As the Bitcoin network continues to strengthen, our outlook for its future is more optimistic.
3EX AI Trading Platform’s Recommendations After Bitcoin Halving
With the completion of Bitcoin’s fourth halving, the scarcity and value of Bitcoin have been further strengthened in the market. In such a market environment, investors can consider the following trading strategies:
1. Long-term Holding: Long-term holding of Bitcoin is a prudent strategy, especially after the halving event, which further enhances Bitcoin’s scarcity. Investors can regularly purchase Bitcoin on the 3EX platform and hold it for the long term, expecting future value growth.
2. Swing Trading: The halving event may bring short-term market volatility, and investors can take advantage of these fluctuations for swing trading. With the real-time profit and loss simulation and automatic execution features on the 3EX platform, investors can adjust their trading strategies timely, seize market opportunities, and achieve short-term profits.
3. Copying High-Quality Strategies: The 3EX platform provides a one-click copy AI strategy function, allowing investors to follow high-quality AI trading strategies from multiple dimensions. In the post-halving market, some excellent AI trading strategies may perform well, and investors can enjoy stable returns by copying these strategies.
The fourth Bitcoin halving event has ushered in a historic moment, pushing Bitcoin’s scarcity to new heights. Despite market fluctuations, Bitcoin’s development trend remains positive, making it one of the most promising assets globally. Considering the long-term market trends and short-term volatility, investors can flexibly utilize the 3EX AI trading platform according to their risk preferences and investment goals, effectively adapting to market changes and maximizing their trading intelligence and profits.
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